Volvo plans to move production of one of its most popular vehicles to the United States. The XC60 SUV is built in China and other markets for local sales, and the decision to move some production here would help Volvo overcome the worst of the tariff situation.
The XC60 is primarily built in Sweden, putting it at risk with the Trump Administration’s most recent 30-percent tariff on imported European autos. Volvo isn’t in a position to absorb increased costs, seeing a 60 percent tumble in profit in the first quarter of this year.
Volvo’s factory in South Carolina will pick up XC60 production. The automaker already builds the electric EX90 and Polestar 3 at the facility, but the plant has excess capacity as the company sees middling demand for the models built there. Moving XC60 production to the plant would help keep jobs in addition to avoiding tariff costs.
Software issues plagued the EX90, which Volvo noted as being part of its financial issues, but the good news for the XC60 is that it features different underpinnings and should not experience the same problems. Software and other issues caused significant delays in the EX30’s launch, and it has yet to reach the affordable prices Volvo promised at its launch.
[Images: Volvo]
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